The younger generation has been advised to take out insurance policies as more people cut back on life insurance as a bid to save money during the financial economic crisis, it has been revealed.

According to a study conducted by Fairinvestment.co.uk, 24 per cent of those who participated admitted to not having life insurance, medical insurance, home insurance, payment protection insurance or do not take out travel insurance when going on holiday.

Spokesperson Rachael Stiles, of the website found the situation quite “concerning.”

She said:  "As budgets get tighter, I can understand why Brits are cutting back, but insurance should be one area that is sustained.”

The study found that the older generation tend to take out life insurance policies more than the younger generation. Only 10 per cent of those aged 19-21 invested in a life insurance policy while 53 per cent of 51-55 year olds had taken out life insurance policy.

“When it comes to life insurance, young people should be more aware as you never know what is around the corner. And, if you are the main bread-winner and have a mortgage or rent to pay and something happened to you, your partner or loved ones would be left to foot the bill, whereas a life insurance policy could cover such expenses.

 A 25 year old male can get a policy for as little as £6 a month, making it an affordable expense," she added.